Laundromat News September 27, 2024

 Leveraging the Latest News Impact

Welcome to another deep dive into the laundromat industry!

In the latest episode of “Laundromat News Today” with Jordan Berry, several critical insights were shared that can significantly impact both existing laundromat owners and those considering entering the market. Here are the main takeaways from the episode.

1. An article in The Guardian discussed the possibility that societal pressures might be causing people to wash their clothes more than necessary.

2. Stay Informed About Interest Rate Changes. The Federal Reserve recently dropped the prime rate by 50 basis points. This could hint at further reductions and has implications for business loans.

If you have a variable interest rate loan, an interest rate drop could lower your monthly payments. Recalculate your financials with the new rates and see if there are opportunities to reinvest the savings into your business. For those looking to buy a laundromat, now might be a good time to secure a loan given the favorable conditions. Consult with a financial advisor to understand how these changes affect your specific situation.

3. Reassess Equipment Purchases and Expansion Plans

Lower interest rates may make equipment and real estate more affordable, possibly encouraging expansion. With financing potentially becoming less expensive, evaluate your current equipment and determine whether it’s time to upgrade. Newer machines can be more energy-efficient and attract customers. Also, if you’ve been considering expanding to a new location, run the numbers again to see if the reduced rates make it more viable.
4.  As companies invest in new facilities and equipment, it could create more jobs, particularly in blue-collar sectors, which might impact laundromat usage.

5. The importance of maintaining a safe and clean laundromat environment, hinting that safety issues have been a concern recently.

6. Let us know your feedback regarding the Fed rate changes and other industry topics, highlighting the value of community input.

Navigating the laundromat business successfully requires staying updated with industry trends and adapting promptly to changes. By implementing these tips, you can not only keep your business thriving but also position it for future growth. Stay informed, stay prepared, and always prioritize your customers’ needs.

 

Feel like you don’t understand all of this but want to? I HIGHLY recommend this book to give you an understanding of our financial system: BROKEN MONEY or the audiobook BROKEN MONEY

Ready to dig deeper? Catch the latest episode of “Laundromat News Today” with Jordan Berry for in-depth discussions and updates.

Got some feedback or news to share? Reach out to Jordan at [email protected].

Stay fluffin’ awesome!

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Episode Transcript

Jordan Berry [00:00:04]:
Welcome to Laundromat News Today. Almost said Laundromat Resources. Laundromat News Today. I am your news anchor. I’m committing to it, Jordan Barry. And I am here to bring you all the latest news in the laundromat industry. Today actually is I want to focus on one sort of piece of news. But before we kind of jump into that, I want to give you a small something to think about news story.

Jordan Berry [00:00:30]:
An article I read in The Guardian was posing the question, are people washing their clothes too much? Has social pressure caused them to wash their clothes too often? Clothes that don’t need to be laundered every time they’ve worn been worn or whatever, were pressured to do that. And, you know, it’s an interesting question and all that. The only reason I pose it is because I just I wanna keep an eye on it. Personally, I wanna keep an eye on that narrative and see if the narrative grows at all. Right now, it was focusing on UK and UK people washing their clothes too much. You know, so that that’s that. But I just want to kind of keep an eye on that. I want you to keep an eye on that, too, and want you to let me know if you hear more chatter around that because it would be interesting to hear if the narrative shifts.

Jordan Berry [00:01:26]:
I do think that would have some sort of impact on our industry, specifically on the self serve, side of things, residential side of things there. So, I wanted to drop that little article, but the majority of the time here, and I wanna keep it short, I wanna spend on the biggest news that I’ve heard 0 people talking about in our industry, and I don’t understand. I don’t know why. But last week, the Fed, Federal Reserve dropped the prime rate, or dropped their yeah, dropped the prime rate by 50 basis points or or half a percent. Right? And, this is big news, you know, mostly in the context. I hear it, you know, in in popular news, not to say that this news is not popular, this is very popular. But, the the in in the popular news sources, mostly, I’m just watching people kinda fish for the implications of that when it comes to purchasing housing. However, I just wanted to bring it up in our sphere here.

Jordan Berry [00:02:30]:
And I want you know, whatever your platform you’re watching or listening this to, leave a comment and let me know your thoughts on the implications of the prime, dropping interest rates by 50 basis points and sort of hinting that another 50 basis points might go down, again before the end of the year. Now, nobody knows, but, that’s been sort of hinted at. And I want I want to hear your take on the implications of that. But here’s a couple of things I want us to think about as business owners, as laundromat owners when it comes to the Fed Prime rate. So number 1, you know, whenever interest rates come down, a lot of us have variable interest rate loans. A lot of the loans given out over the last couple of few years at least have been variable rate, if not longer than that, have been variable rate tied to a prime rate, of some sort. And, you know, when that prime rate comes down, our payments go down, which is great news for us. Now, here’s what’s interesting is that most of our loans are 5, 7, maybe 10 years.

Jordan Berry [00:03:33]:
And so, actually, as I was kinda doing some calculations, just trying to see what the impact of that is, really, the impact is fairly minimal. Even even one full percentage point is fairly minimal. It might mean a few $100 a month for us depending on your loan amount and all that, obviously. So it’s not a massive moving of the needle for it to come down half a percentage point for us, but it is something. Right? And, if if I may draw an analogy to the housing market, it is interesting to see how even a relatively small interest rate change can stimulate home acquisition. And I’m wondering if a relatively small interest rate drop might stimulate equipment and acquisition, purchases in the small business realm and in particular in the laundromat industry. So I’m I’m curious how you feel about that, and does it make you more or less likely or or neutral in terms of wanting to buy new equipment or buy in another location, anything like that? It has put a lot of pressure on us as interest rates rose rather rapidly over the last couple of years in terms of making money more expensive and making it more difficult for us to retool or acquire new location. So just curious on your thoughts on that.

Jordan Berry [00:05:00]:
But that’s definitely something to kinda keep an eye on, equipment pricing or financing for equipment purchases, maybe has dropped a little bit there. Another kind of implication of this which, again, I don’t know that we’re gonna see massive changes at this point in time, but it will be interesting to watch the trajectory of these interest rate saga, I guess. I was gonna say drops, but we don’t necessarily know that’s gonna drop. But the saga of the interest rates is as interest rates do drop, it is more likely that companies are going to invest back into their businesses by adding new facilities or more equipment and that not just in our industry, but in other industries too. And why that’s important is because a lot of our clients, are in, you know, blue collar jobs, for example, and as some of these companies start investing in more equipment, more facilities, stuff like that, there’s gonna be more of a demand for construction, manufacturing jobs. Some of our clientele, there that use our facilities, there may be, more jobs there. So that could have, an impact on us. I again, I don’t think it’s enough to really move the needle massively, but it is something to kinda keep an eye on.

Jordan Berry [00:06:22]:
And, really, the point of this segment or this episode here of of the news is I want the conversation to start happening. So I wanna hear what other people have to say. I’m not the ultimate authority here. And, again, this is a first from the from the Fed’s point of view, it looks like this is probably a first step here, and it’s not gonna make a dramatic impact on small businesses and laundromats in particular, but it’s definitely worth keeping an eye on. So tell me what you think. What are the implications of the Fed decreasing the rates here? Is it gonna make a big impact in us as business owners, in our, target demographics at all? Is there gonna be any changes that we’re seeing? Anything that you’re seeing that we need to be aware of? Leave a comment if you’re on a platform that you can leave a comment, YouTube or Facebook or LinkedIn, something like that. If you’re listening on the podcast and you’ve got something to say, shoot me an email, [email protected], and I’ll bring up your comments in the next, next week’s episode of Laundromat News Today. Also, if you have any other news in the laundromat world, send it over, laundromat, news at laundromatresource.com, and we’ll make sure we get it in future episodes.

Jordan Berry [00:07:42]:
And, you’re welcome to do that whether your news is small, something about your particular laundromat or maybe you bought a laundromat and you just wanna share it with the world, shout it from the rooftops. Or if you have got a product or service or, new partnership or anything like that that you’re working on and you’re part of a company doing something cool, would love to share that here, [email protected]. So send that over. And I’m gonna wrap up the news with that because most of the news from this week was just kind of depressing news. And here’s the takeaway. Make sure you are being safe out there and make sure you’re thinking about ways to make sure that your staff is safe. There’s a lot of, just kinda random, you know, things happening at Laundromats that we don’t wanna happen in in our business. It is a huge, huge reason that I advocate we have well maintained, well taken care of, clean, safe laundromats as best as we can.

Jordan Berry [00:08:44]:
So make sure we’re operating that way. That is it for the news. One thing I was thinking about and apologies again to Patrick. I just got back from a trip. I did not have time. I just feel like it’s gonna take me a lot of time to sit down and think of laundromat jokes. Maybe chat gbt can help me out next week. This is not a funny episode whatsoever.

Jordan Berry [00:09:03]:
0 jokes. They all went down the drain. No. It’s not even a good joke. Patrick, I’m letting you down, and I just wanna acknowledge that. But I also was thinking I you know, like, the best newscasters on the funniest TV shows always have, like, a a catch phrase that they end with, that’s the way the cookie crumbles, b e a u, to full day. I don’t know. I’d I probably need a catchphrase.

Jordan Berry [00:09:31]:
One that AI wrote for me a while back that you may have seen sneak in a couple of things because I think it’s hilarious is stay fluffin’ awesome. So stay fluffin’ awesome this week. If you’ve got some input on the Fed, rate cuts, I would love to hear about it. If you’ve got some input on what that catchphrase that wraps up every episode should be, I’d love to hear about that too. And until next week, that’s LornaMed News today, and I will see you then with the latest and greatest next week.

Spanish Summary

¡Claro! Aquí tienes un resumen del episodio en español:

**Podcast:** Laundromat Resource
**Título del Episodio:** Laundromat News Today 27 de septiembre de 2024
**Anfitrión:** Jordan Berry

**Resumen del Episodio:**
En este episodio, Jordan Berry presenta las últimas noticias de la industria de las lavanderías. Empezó mencionando un artículo de The Guardian que cuestiona si las personas están lavando su ropa con demasiada frecuencia debido a la presión social. Aunque este tema se centra en el Reino Unido, Jordan sugiere que podría tener implicaciones para la industria de las lavanderías en el futuro.
El enfoque principal del episodio es el recorte de la tasa de interés principal por parte de la Reserva Federal de Estados Unidos en 50 puntos básicos (0.5%). Jordan destaca cómo esto puede afectar a los dueños de lavanderías, especialmente aquellos con préstamos a tasa variable, ya que sus pagos mensuales podrían reducirse ligeramente. También plantea la posibilidad de que una pequeña disminución en las tasas de interés pueda incentivar la compra de nuevo equipo o la adquisición de nuevas ubicaciones.
Jordan invita a los oyentes a compartir sus opiniones sobre el impacto de esta reducción en las tasas de interés y cómo podrían influir en sus decisiones de negocio. Además, anima a los dueños de lavanderías a mantener sus establecimientos limpias y seguras.
Finalmente, Jordan menciona que planea introducir una frase de cierre en sus episodios y propone “stay fluffin’ awesome” como una opción. También bromea sobre la falta de chistes en este episodio.

Espero que este resumen sea de ayuda.

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